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PRECIOUS-Gold struggles after 3-day losing streak as dollar stands tall
October 20, 2015 / 12:44 AM / 2 years ago

PRECIOUS-Gold struggles after 3-day losing streak as dollar stands tall

SINGAPORE, Oct 20 (Reuters) - Gold steadied after three days
of losses on Tuesday but remained under pressure as the dollar
was well bid on expectations the Federal Reserve could still
raise U.S. rates this year.
    
    FUNDAMENTALS
    * Spot gold was little changed at $1,170.06 an ounce
by 0029 GMT, after losing about 1.2 percent in the past three
sessions. 
    * The dollar climbed to its highest in over a week on
Monday against a basket of major currencies, weighing on gold. A
stronger greenback makes gold expensive for holders of other
currencies.
    * Gold touched its highest level in 3-1/2 months last week
on bets the Fed will not raise U.S. rates amid concerns about
the global economy. But the rally lost steam after robust U.S.
economic data, and as gold failed to surge past the key $1,200
level. 
    * Despite strong headwinds from overseas that are holding
down U.S. inflation, the Fed should soon begin to raise interest
rates to slow down economic growth before it becomes
unsustainable, San Francisco Fed President John Williams said on
Monday. 
    * Investors worldwide have expressed frustration over the
mixed messages from the U.S. central bank in recent weeks. Fed
Chair Janet Yellen and other officials have said they expect a
rate hike will be needed by the end of this year, but two Fed
governors last week urged caution. The Fed has kept interest
rates near zero for nearly seven years.
    * The Fed holds two more policy meets this year: next week
and in December. Market expectations for a rate hike have
shifted to next year in recent weeks.
    * Elsewhere, assets in SPDR Gold Trust, the top
gold-backed exchange-traded fund, rose 0.51 percent to 697.32
tonnes on Monday.  
    * New liquidity rules for banks in the European Union could
raise costs for those trading gold by up to 300 percent, forcing
them to withdraw from the market, the head of the London Bullion
Association said. 
    * For the top stories on metals and other news, click
 or 
    
    MARKET NEWS
    * Asian equities dipped early on Tuesday after commodity
prices slid in the wake of China growth woes and dampened risk
sentiment, while the euro hovered near a 10-day low ahead of a
European Central Bank meeting that could open the door for more
monetary easing. 
    
    DATA AHEAD (GMT)
    0600 Germany Producer prices Sep 
    0800 Euro zone Current account Aug 
    1230 U.S. Housing starts Sep 
    1230 U.S. Building permits Sep

    PRICES AT 0029 GMT    
 Metal            Last      Change    Pct chg
                                             
 Spot gold         1170.06     -0.24    -0.02
 Spot silver         15.77     -0.05    -0.32
 Spot platinum      1009.7       0.7     0.07
 Spot palladium      682.1      -0.4    -0.06
 Comex gold         1170.2      -2.6    -0.22
 Comex silver       15.805    -0.036    -0.23
                                             
 COMEX gold and silver contracts show the
 most active months
 
 (Reporting by A. Ananthalakshmi; Editing by Richard Pullin)

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